Amazon is starting to lay off 18,000 employees starting today, according to a statement from Nuven earlier this month. The layoffs were originally supposed to come out today, but leaks surfaced to the press, so CEO Andy Jessee decided to officially comment on the matter ahead of the planned layoffs.
Jassi said the 18,000 job cuts will affect several teams, but the most affected will be the Amazon Stores and People Experience and Technology (PXT) solutions teams. With higher interest rates for people and businesses, companies like Amazon are seeing lower earnings and lower share prices. To boost investor confidence, companies focus their efforts on profitable endeavors and lay off workers in less profitable areas of the business.
High interest rates also create another problem for companies, now it is more expensive to get credit. For the past decade, since the last recession, interest rates have been very low and that means startups can flourish and big firms like Amazon can spend money on more experimental, but unprofitable, activities. The increase in the cost of credit is killing these types of activities and people in these sectors are feeling the brunt. With less money in their pockets, the demand for goods will fall and inflation will return closer to the 2 percent target.
According to an earlier statement, Amazon employees based in the US will be approached directly, while Amazon in Europe will go through employee representative bodies. Last year, 10,000 jobs were expected to be cut but the number has since almost doubled to 18,000. Amazon isn’t the only company looking to cut employees, it was reported this morning that Microsoft is also looking to cut 10,000 jobs today.
“For those affected by these outages, I want you to know that I appreciate your support of Amazon, and the work you do on behalf of our customers,” Andy Jessee said in a statement earlier this month. How grateful I am.” “You have made a meaningful difference in the lives of so many customers. For those who will continue to travel with us, I look forward to partnering with you to make life better and easier for customers every day. coins and keep inventing relentlessly to do so.
While that’s not good news for affected employees who are likely to see mortgages, rent and bills increase, some data released by ZipRecruiter in December revealed that 79% of tech workers Those who were fired were able to find new jobs within three months. It is unclear whether finding work will be as easy in the coming months. For example, Amazon has drastically cut job openings since last May.